Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — Owl Rock Capital — Corporate Update (April 2020)
14 slides from Blue Owl Capital's corporate update, Apr 1, 2020
Slide 1: Update on Board of Directors Approval of Reduced Asset Coverage
OWL ROCK CAPITAL CORPORATION www.OwlRockCapitalCorporation.com Update on Board of Directors Approval of Reduced Asset Coverage April 2020
Slide 2: ORCC's Rationale for Reducing Asset Coverage
NYSE: ORCC │ 2 ORCC’S RATIONALE FOR REDUCING ASSET COVERAGE ▪ On March 31, 2020, the ORCC Board of Directors unanimously approved the reduction of ORCC’s minimum asset coverage ratio from 200% to 150%. ▪ This step should enhance our ability to deliver strong returns to shareholders while continuing
Slide 3: ORCC's Plan for Reducing the Asset Coverage Requirement
NYSE: ORCC │ 3 ORCC’S PLAN FOR REDUCING THE ASSET COVERAGE REQUIREMENT Operate with increased cushion to the regulatory limit, reducing risk for the Company and stakeholders Continue our highly selective and disciplined, risk - averse investment approach Maintain investment grade credit ratings Mode
Slide 4: Benefits of Reducing the Asset Coverage Requirement
NYSE: ORCC │ 4 BENEFITS OF REDUCING THE ASSET COVERAGE REQUIREMENT Past performance is not a guarantee of future results. The adoption of the 150% asset coverage ratio will provide increased flexibility and the potential for incremental earnings while maintaining our conservative investment posture
Slide 5: We Believe Increased Cushion to the Regulatory Limit Improves Risk Profile
NYSE: ORCC │ 5 WE BELIEVE INCREASED CUSHION TO THE REGULATORY LIMIT IMPROVES RISK PROFILE 0.90x 0.75x 1.25x - 0.25x 0.50x 0.75x 1.00x 1.25x 1.50x 1.75x 2.00x Old Target Leverage 0.75x Debt to Equity New Target Leverage Range 0.9x - 1.25x Debt to Equity Old Regulatory Leverage Limit Old Cushion (0.25
Slide 6: Conservative Leverage Profile Is Favorable Compared to Other Entities
NYSE: ORCC │ 6 0.90x 10x 9x 6x 1.25x 9% 10% 14% 48% - 10% 20% 30% 40% 50% 60% - 2x 4x 6x 8x 10x 12x Banks CLOs REITs ORCC Leverage Leverage Equity % BDCS CONSERVATIVE LEVERAGE PROFILE IS FAVORABLE COMPARED TO OTHER ENTITIES ▪ Underlying collateral consists of senior secured investments ▪ Credit perf
Slide 7: ORCC's Approach to Portfolio Construction Will Remain Unchanged
NYSE: ORCC │ 7 ORCC’S APPROACH TO PORTFOLIO CONSTRUCTION WILL REMAIN UNCHANGED Past performance is not a guarantee of future results. As of 12/31/19. 1. Excludes certain investments that fall outside of our typical borrower profile, our portfolio metrics represent 96.9% of our total portfolio based
Slide 8: Portfolio Highlights – Conservative Credit Metrics
NYSE: ORCC │ 8 PORTFOLIO HIGHLIGHTS – CONSERVATIVE CREDIT METRICS $79MM Portfolio Company EBITDA 5.5x Portfolio Company Leverage 2 FOCUSED ON UPPER MIDDLE MARKET COMPANIES AND CONSERVATIVE CREDIT METRICS Senior Secured and Focused on Top of the Capital Structure Broadly Diversified Across Industries
Slide 9: Portfolio Highlights – Diversification
NYSE: ORCC │ 9 PORTFOLIO HIGHLIGHTS – DIVERSIFICATION Borrower Diversification Industry Diversification As of 12/31/19. Past performance is not a guarantee of future results. Diversification will not guarantee profitability or protect against loss. Sizing to position sizes that are 1 – 2% of a fully
Slide 10: ORCC's Strong Liquidity and Funding Profile
NYSE: ORCC │ 10 ORCC’S STRONG LIQUIDITY AND FUNDING PROFILE As of 3/26/20 unless otherwise noted. 1. The amount available does not reflect limitations related to each credit facility’s borrowing base. Reflects the use of the J ul y 2025 Notes proceeds and CLO III proceeds to pay down a portion of th
Slide 11: Diverse Access to Financing with Well Laddered Maturities
NYSE: ORCC │ 11 DIVERSE ACCESS TO FINANCING WITH WELL LADDERED MATURITIES Aggregate Principal Amount Committed / Outstanding Principal Amount Outstanding Interest Rate Maturity Date Secured Revolver 2,3 $1,195 million $131 million LIBOR + 200 04/02/24 SPV Asset Facility 1 $400 million $300 million L
Slide 12: What Differentiates Owl Rock
NYSE: ORCC │ 12 WHAT DIFFERENTIATES OWL ROCK » Diversified portfolio designed for our large, institutional investor base – focused on quality and consistency » The right pool of capital to be the partner of choice for borrowers – offers flexibility & ability to commit and hold large investments » La
Slide 13: Any Questions Please Contact
NYSE: ORCC │ 13 ANY QUESTIONS PLEASE CONTACT: ORCC Investor Relations ORCCIR@owlrock.com (212) 651 - 4705 www.OwlRockCapitalCorporation.com
Slide 14: Important Information
NYSE: ORCC │ 14 IMPORTANT INFORMATION Important Information For Stockholders In connection with the proposal to reduce the Company’s minimum asset coverage ratio to 150%, the Company intends to file a p rel iminary proxy statement and an accompanying proxy card with the SEC. The information containe